ECONOMICS

Detailed explanation-1: -The work done under the contract shall be judged by the contractees architect, surveyor, or engineer who will issue a certificate stating the value of work done so far and approved by him such work is known as work certified. Revenue in books is recognized on the basis of work certification. Was this answer helpful?

Detailed explanation-2: -WORK UNCERTIFIED Work uncertified is that portion of work completed which has not been certified / approved by the contractee’s architect / valuer / surveyor. It is always valued at cost price. The cost of work uncertified is debited to the Work in progress A/c and credited to the contract A/c.

Detailed explanation-3: -Work certified is valued at cost . 4. The cost of material lost or destroyed is debited to the contract account.

Detailed explanation-4: -Work certified is the work completed and certified by the engineer and work uncertified is that which is completed but not certified by the engineer. Work certified and work uncertified are part of work in progress and to be recorded in contract account.

Detailed explanation-5: -Work uncertified means work done but not certified by authority. So, contractee will cut some money on the basis of work uncertified and will keep in his pocket. This will be retention money.